ScoreWhy is Northrop Grumman Corp. ?
1
High Management Efficiency with a high ROCE of 14.47%
2
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 6.30
3
The company declared negative results in Mar'25 after very positive results in Dec'24
- OPERATING CASH FLOW(Y) Lowest at USD 2,972 MM
- INVENTORY TURNOVER RATIO(HY) Lowest at 21.38 times
- DEBTORS TURNOVER RATIO(HY) Lowest at 4.49 times
4
With ROCE of 13.79%, it has a fair valuation with a 2.98 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 17.75%, its profits have risen by 72% ; the PEG ratio of the company is 0.2
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Northrop Grumman Corp. should be less than 10%
- Overall Portfolio exposure to Aerospace & Defense should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Northrop Grumman Corp. for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Northrop Grumman Corp.
44.33%
1.05
27.21%
S&P 500
14.9%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.66%
EBIT Growth (5y)
1.04%
EBIT to Interest (avg)
6.30
Debt to EBITDA (avg)
2.44
Net Debt to Equity (avg)
0.87
Sales to Capital Employed (avg)
1.31
Tax Ratio
16.85%
Dividend Payout Ratio
30.91%
Pledged Shares
0
Institutional Holding
84.98%
ROCE (avg)
14.47%
ROE (avg)
31.57%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
6.26
EV to EBIT
27.12
EV to EBITDA
20.18
EV to Capital Employed
4.10
EV to Sales
2.77
PEG Ratio
10.95
Dividend Yield
1.34%
ROCE (Latest)
15.12%
ROE (Latest)
25.08%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 4,757 MM
DIVIDEND PER SHARE(HY)
Highest at USD 5.07
RAW MATERIAL COST(Y)
Fallen by -8.9% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 80.85 %
DEBTORS TURNOVER RATIO(HY)
Highest at 5.07 times
NET SALES(Q)
Highest at USD 11,712 MM
OPERATING PROFIT(Q)
Highest at USD 1,677 MM
PRE-TAX PROFIT(Q)
Highest at USD 1,740 MM
NET PROFIT(Q)
Highest at USD 1,427 MM
EPS(Q)
Highest at USD 10.05
-1What is not working for the Company
INTEREST(Q)
Highest at USD 175 MM
Here's what is working for Northrop Grumman Corp.
Operating Cash Flow
Highest at USD 4,757 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Dividend per share
Highest at USD 5.07 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Net Sales
Highest at USD 11,712 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 1,677 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 1,740 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 1,740 MM has Grown at 42.65%
over average net sales of the previous four periods of USD 1,219.75 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 1,427 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 1,427 MM has Grown at 42.03%
over average net sales of the previous four periods of USD 1,004.75 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 10.05
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Lowest at 80.85 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Debtors Turnover Ratio
Highest at 5.07 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -8.9% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Northrop Grumman Corp.
Interest
Highest at USD 175 MM
in the last five periods and Increased by 8.7% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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